Albright Capital’s bottom-up process is resource and research intensive. It starts with fundamental company-specific analysis and overlays local jurisdictional, political, macro, currency and other risk assessments on a deal-by-deal basis.

Preference is given to investments that solve real problems and inherently provide natural alignment with host governments. Overly politicized situations, vital strategic assets, crowded markets, and other circumstances with magnified risk are avoided.   

 The process eschews pronouncements about the economic prospects of any particular country. We focus instead on quality management teams that consistently deliver value, and situations that offer "equity" upside with downside protection achieved through careful deal structuring and appropriate governance rights.

Click on the links below to learn more about each step of the process.

Albright Capital actively seeks to identify EM opportunities with the following criteria:

  • compelling themes and market inefficiencies; social and economic problems to be solved;
  • gaps in the market that can be filled by proven management teams and established business models; and
  • good companies in out of favor jurisdictions or confronting manageable stress

The research process is supported by continuous CIO level proprietary research into macro backdrop of 15 to 20 countries, supplemented by steady less frequent research into another 20 countries. ASG’s local and global networks are also available, as needed, based on ACM pipeline developments. ASG’s views are invaluable as they are unburdened by the Wall Street consensus at any given point in time.

This continuous research means that Albright Capital is usually already well informed about the issues in any given jurisdiction and can move quickly when we see an interesting deal. We support deal leaders with macro risk and opportunity overlay, understand market sentiment and expectations at any given point in time, and have proprietary assessment/independent analysis of all risks, including political and currency risks.

Albright Capital is sector agnostic with significant expertise in infrastructure, infrastructure services and real assets. We focus on opportunistic, often contrarian, bottom-up origination.

Our target “middle market” commitments of $25 to $50 million usually builds from a small initial investment, and occasionally increasing to over $100 million as milestones are achieved.

We avoid auctions, overcrowded circumstances, assets of strategic importance to host country, local businesses that lack regional or global scalability, and highly correlated macro plays.

Albright Capital focuses on a disciplined insistence on a value based entry price, the single most important risk management variable in EM private markets, given the volatility of the asset class.

From our heavy deal flow we have developed a high degree of selectivity based on a refined EM “pattern recognition” and centralized underwriting process, which includes:

  • pursuing the best opportunities globally, with no burden to invest in any particular geography
  • supporting deal leaders, encourages candid input from the entire ACM/ASG team
  • seasoned assessment of both local and global variables
  • unusually wide range of perspectives provides a significant competitive advantage

Our views of macro risk and opportunity variables are overlaid on a deal by deal basis, with independent analysis and effective navigation of EM risks and opportunities, including initial and ongoing political and currency risk assessment/management.

 

Each of our deals incorporates best practices from structured credit and private equity, and is designed to assist management and other company stakeholders achieve their objectives, and provide our LPs with substantial downside protections. Structural elements may include:

  • creditor rights; seniority, collateral
  • appropriate governance rights
  • structured equity or small initial “toe hold” positions; follow on capital based on achievement of milestones rather than large block of capital all at once

In addition to traditional private equity structures, Albright Capital implement self-liquidating structures (coupon payments and final maturity dates) in many of our investments to accelerate return of capital. Our structured private investments historically yield realizations 3X faster than traditional EM private equity.

ACM portfolios by vintage are tracking 4-5 year average lives; traditional EM PE portfolios often track 10-12 years.